Question Details

Which of the following is not a common disclosure for inventories 



1.	What method yields results that are essentially the same as those of the conventional retail method?
a.	FIFO.
b.	Lower-of-average-cost-or-net realizable value.
c.	Average cost.
d.	LIFO.

	2.	What is the effect of net markups on the cost-retail ratio when using the conventional retail method?
a.	Increases the cost-retail ratio.
b.	No effect on the cost-retail ratio.
c.	Depends on the amount of the net markdowns.
d.	Decreases the cost-retail ratio.

	3.	What is the effect of freight-in on the cost-retail ratio when using the conventional retail method?
a.	Increases the cost-retail ratio.
b.	No effect on the cost-retail ratio.
c.	Depends on the amount of the net markups.
d.	Decreases the cost-retail ratio.

	4.	Which of the following is not a common disclosure for inventories ?
a.	Inventory composition.
b.	Inventory location.
c.	Inventory financing arrangements.
d.	Inventory costing methods employed.

	5.	Which of the following statements is false regarding an assumption of inventory cost flow?
a.	The cost flow assumption need not correspond to the actual physical flow of goods.
b.	The assumption selected may be changed each accounting period.
c.	The FIFO assumption uses the earliest acquired prices to cost the items sold during a period.
d.	The LIFO assumption uses the earliest acquired prices to cost the items on hand at the end of an accounting period.



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